Christmas Fraud Prevention Tips

Whenever there are major sales events, shoppers driven by fear of missing out take more chances, creating an opportunity for criminals to exploit.

Key takeaways

• Fraud spikes during the festive season: scammers exploit the surge in online shopping, with identity fraud and AI-powered attacks on the rise.
• Shop safely online: use legitimate websites, avoid clicking links from emails or social media, check URLs, and use strong, unique passwords.
• Secure payments: prefer credit cards for extra protection, avoid saving card details, and enable transaction alerts.
• Protect your devices and data: keep software updated, avoid public WiFi without a VPN, and limit personal info shared on social media.

Cifas has noted that in the first half of 2025, there was a 1% increase in the number of cases compared to the same period in 2024 - this is an unpreceded number. This translates to 217,000 cases. In the first six monthes of the year, over 118,000 identity fraud cases were reported with a 35% increase in the misuse of facility cases.

Online fraud over the festive season

Last year, consumers reported 68,000 cases of online shopping fraud which cost more than £56.3 million - this is a 20% compared to the previous year.

Over the festive shopping season, Action Fraud data reveals that this is prime time for cybercriminals. Scams and payment fraud has resulted in £629.3 million stolen from UK consumers in the first six months of 2025.

Unfortunately, the bad news doesn't end there. Fake shopping sites have surged 250% and, according to the National Cyber Security Centre (NCSC), scammers are likely to continue increasing the use of AI tools to develop more convincing fraud campaigns.

“As we head into the holiday shopping season, people are understandably eager to find the best deals online. Unfortunately, this is also prime time for cyber criminals, who exploit bargain hunters with increasingly sophisticated scams – sometimes crafted using AI – making them harder to detect"

Fraud prevention tips for the festive season

It's not all doom and gloom, as we have some tips to help keep your money and information safe this festive season.

1. Watch out for scams and use common sense

If it sounds too good to be true, it almost always is. Don't feel pressured into making a purchase because you fear missing out—it makes you more vulnerable. Remember to check the reviews and ratings of sites you have not used before.

2. Only shop from legitimate websites

Carry out your searches yourself and avoid clicking on links in emails or on social media that promise great deals. Adverts can look like they are from legitimate retailers, but they have been created by fraudsters.

3. Keep anti-virus software up-to-date on all devices

Make sure that you download any updates as soon as they become available in order to protect yourself. If you click on a link or download an attachment in an email, hackers might inject malware into your device, which could steal your login credentials or your payment information.

4. Don't use public WiFi when shopping online

Public WiFi is not secure and can be easily mimicked or hacked. You should be especially careful to avoid accessing sensitive sites like your bank. If you need to use public WiFi, turn on a VPN which will make it impossible for hackers to intercept.

5. Don't respond to unsolicited messages

That includes texts, tweets, phone calls or emails. Be particularly careful with links in messages, as they may not be as authentic or genuine as they sound. If in doubt, double-check with the retailer if the email you have received is legitimate.

6. Use strong passwords

For all your accounts, particularly when shopping online. Don't use the same password across multiple sites, and never share your passwords. By following this guidance, you're less likely to fall victim to hackers.

7. Check that URLs match the retailer's genuine domain

Ensure there's a secure padlock sign on the payment page before you buy. Watch out for poor spelling and low-quality images, which may indicate a 'spoof' site created in a rush. Even if the URL looks like that of a trusted retailer, it could be a retailer scam where the URL almost precisely matches the retailer's website.

8. Opt out of saving details

If retailers ask if you'd like to save your payment details, decline. It is important never to save your bank details with any online store, even if you are sure it is a legitimate website.

9. Use a credit card for purchases over £100

This offers you greater fraud protection. Credit cards typically provide an extra layer of security as they are not linked to your money, and your credit card supplier is jointly liable with the supplier for any fraudulent activity. This is particularly ideal for larger purchases that are over £100.

10. Turn on alerts from your card issuer or bank

In this case, you will immediately be notified if any irregular spending occurs. Without notifications turned on, you might miss the opportunity to nip the fraudulent activity in the bud.

11. Check your social media privacy settings

Sharing too much information online makes you an easy target for identity theft. Ensure that you guard against fraudsters accessing your information by double-checking your privacy and security settings across your social media accounts.

12. Sign out of your account when you've finished

This is crucial if you're using a shared computer. Staying signed in opens the door to the theft of your personal information and hacking opportunities. Remember always to sign out, even if you are in a rush.

Helpful sites for more advice on fraud

Take Five
Take Five is a national campaign offering straightforward, impartial advice to help everyone protect themselves from preventable financial fraud. This includes email deception and phone-based scams, as well as online fraud – particularly where criminals impersonate trusted organisations.

Financial Fraud Action UK
Financial Fraud Action UK is responsible for leading the collective fight against financial fraud on behalf of the UK payments industry. Their membership includes banks, credit, debit and charge card issuers, and card payment acquirers in the UK.

Fraud prevention FAQs

What kind of frauds beyond fake‑retailer scams should I watch out for over Christmas?

According to Action Fraud’s “12 Frauds of Christmas” campaign, fraudulent risks aren’t limited to fake shops. Other common scams include: phishing (fake emails/texts), courier‑delivery scams (fake delivery notifications asking you to pay fees), gift‑card fraud, holiday/ticket fraud, QR‑code scams, romance fraud, fake pet ads, investment or charity scams, account‑hacking, and more.

Does paying by credit card always protect me if something goes wrong?

Paying with a credit card is safer than directly transferring money as it gives you more buyer protection and liability cover. But “safer” is not a guarantee. If you share card info on a fraudulent site or willingly transfer to a scammer (e.g. by bank transfer), protection may not apply. The key remains: use trusted retailers, avoid suspicious payment methods (like direct bank transfers or unknown platforms), and act fast if you suspect fraud.

More on compliance at Christmas

Our Essentials Library contains e-learning content designed to help organisations meet fundamental compliance requirements. If you are looking for focused training, our Fraud Prevention Training Package offers a complete solution for your compliance programme. Courses in the libraries include:

• Fraud Prevention Training Course
• Identity Fraud Training Course
• Understanding Failure to Prevent Fraud Training Course

If you would like to access leading insights and compliance tips, you can browse our free resources by topic to find guides, modules, compliance bites and more.